In quotes: Obama in Indonesia

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US President Barack Obama held up Indonesia as a model for the world, citing its evolution towards democracy and its religious tolerance. Here are a few key excerpts from his speech at the University of Indonesia on Wednesday.

On democracy

Today, we sometimes hear that democracy stands in the way of economic progress. This is not a new argument. Particularly in times of change and economic uncertainty, some will say that it is easier to take a shortcut to development by trading away the rights of human beings for the power of the state. But that is not what I saw on my trip to India, and that is not what I see in Indonesia. Your achievements demonstrate that democracy and development reinforce one another.

On Islam

Relations between the United States and Muslim communities have frayed over many years. As President, I have made it a priority to begin to repair these relations. I have made it clear that America is not, and never will be, at war with Islam. Instead, all of us must defeat al-Qaeda and its affiliates, who have no claim to be leaders of any religion - certainly not a great, world religion like Islam.

On the global economy

America has a stake in an Indonesia that plays its rightful role in shaping the global economy. Gone are the days when seven or eight countries could come together to determine the direction of global markets. That is why the G20 is now the centre of international economic co-operation, so that emerging economies like Indonesia have a greater voice and bear greater responsibility. And through its leadership of the G20's anti-corruption group, Indonesia should lead on the world stage and by example in embracing transparency and accountability.

On Middle East peace

In the Middle East, we have faced false starts and setbacks, but we have been persistent in our pursuit of peace. Israelis and Palestinians restarted direct talks, but enormous obstacles remain. There should be no illusions that peace and security will come easy. But let there be no doubt: we will spare no effort in working for the outcome that is just, and that is in the interest of all the parties involved: two states, Israel and Palestine, living side by side in peace and security.

On diversity

Because Indonesia is made up of thousands of islands, hundreds of languages and people from scores of regions and ethnic groups, my time here helped me appreciate the humanity of all people.